Between 2018 and 2021 the cost of ride sharing has increased over 92% with Lyft and Uber. It is getting more expensive to choose this transportation method, but why?
With increasing demand and not enough drivers those who are looking to take rides with Uber or Lyft are going to see higher prices. With that lack of drivers and inability to meet demand it means people are waiting longer too, on top of seeing higher prices.
And one of the reasons that people went with these competitors to traditional taxi operators in the first place was because they beat them on convenience and price. But when you've got customers waiting longer times and seeing higher prices, what's to stop them from calling alternatives like their old community taxi companies? Whatever gets them to wherever they might be going is where you can expect them to gravitate to.
Not only are they having a hard time attracting drivers but they have difficulty in retaining them as well. With the countless videos we see of ride-sharing drivers being harassed by customers in different communities, can you blame many people for not wanting to engage in that occupation? There are many ride-sharing drivers who love what they do but you can find plenty of stories that past drivers have shared who have had bad experiences and stopped that line of work.
There is a driver shortage that they are going to need to sort out to meet that demand and they know it.
Because of this driver shortage and the issue with demand, the problems they are seeing now, some question whether or not the entire system might be sustainable for this sort of transportation operation.
Right now, according to the Uber website, those working in places like New York City can earn upwards of $37 per hour, in Miami $27.50, Chicago $30.49, New Jersey $26.67, Houston $22.97, Philly $32.60, and Tampa Bay about $25.35 on average.
Those higher earnings are likely to be a temporary situation though because of the driver shortage and they are looking for interested drivers to capture that opportunity and apply for open positions. Right now there are occupations in various industries that have been sweetened with perks because of the labor shortage and that means it is the perfect opportunity for some to find better deals if that is what they're looking for.
Last year Uber gave more than 1 billion trips around the world and that requires a lot of drivers to meet that demand, but this year companies like Uber and Lyft have been facing historic shortages for drivers and it isn't clear when that might get better for them.